Chinese heavy truck industry has witnessed an unprecedentedprosper since 2009, and it has been attracting an increasing number of westernheavy truck companies to conduct business activities. However, differentindustry environment has brought different situation including the government’spolicies and consumers’ buying habits for local companies and foreign competitors.Thus, this study aims to analyze the impact of industry factors in Chinese heavy truck industry by examining a collection of the methodology. Porter diamond model is widely applied to investigate industry’s competitive advantages, butit should be noted that in this research the model is adapted into a new version in light of the necessity of emphasizing Chinese government in businessactivities. Main findings of this study are as follows: (1) research andanalysis factors of impact Chinese heavy truck industry and highlight government’s influence as a significant impact factor through a series ofpolicies; (2) it might be of considerable benefit if foreign heavy truckcorporation can observe the political transformation or policies while setting themarketing strategy in China.

This thesis addresses the issue of cluster dynamics. The theoretical basis is the Porter’s diamond model of industrial clusters and the analysis pursued in the thesis considers the impact of foreign ownership on Porter’s determinants of successful cluster: factor conditions, demand conditions, supported industries and, finally, firms’ strategies and structures. According to Porter, sustainability of clusters is a function of its dynamics and propensity to change, which in turn depends on these four components of the national home base. The analysis is based on a comprehensive set of case studies conducted for the life science industrial cluster located in the Stockholm-Uppsala area. The results indicate that foreign ownership has positive effect on the dynamism of the cluster.